Altisource Portfolio Solutions Becomes Oversold (ASPS)

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Thursday, shares of Altisource Portfolio Solutions SA ( ASPS) entered into oversold territory, hitting an RSI reading of 27.6, after changing hands as low as $140.1504 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 52.0. A bullish investor could look at ASPS's 27.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ASPS shares:

START SLIDESHOW:
Find out what 9 other oversold stocks you need to know about »

Altisource Portfolio Solutions SA 1 Year Performance Chart

Looking at the chart above, ASPS's low point in its 52 week range is $66.97 per share, with $171.00 as the 52 week high point — that compares with a last trade of $141.75.

According to the ETF Finder at ETF Channel, ASPS makes up 4.18% of the Guggenheim Spin-Off ETF ( CSD) which is trading lower by about 0.9% on the day Thursday.

More from Stocks

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

GE Is Too Opaque, Too Diversified and Too Poorly Managed: Doug Kass Insider

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Google's YouTube in Hot Water Again Over Ads on Inappropriate Content

Google's YouTube in Hot Water Again Over Ads on Inappropriate Content

Should Tesla Nominate a New CEO Not Named Elon Musk?

Should Tesla Nominate a New CEO Not Named Elon Musk?